The global allure of Scottish and Irish booze seems to be getting stronger, looking at C&C Group 's (CCR) recent numbers. The export division was the only segment to register a rise in turnover and operating profits thanks to management's estimate that demand in export markets - specifically Asia Pacific, Europe and Africa - is growing by 15-20 per cent per year. Several new agreements, including with Mahou San Miguel to brew Tennent's in India and another with B2C to distribute the Scottish tipple in South Africa, are likely to mean continued rude health for the division.
The soggy summer was the main culprit behind dampened sales in its main Irish and Scottish markets, as well as new drink-driving legislation in the latter which contributed to a 4 per cent knock in sales to C&C's pub customers. Management is upbeat, however, about the strength of its growing premium craft brands, such as Belgian lager Heverlee. Management said customers were willing to "trade up via craft, boutique or differentiated products", something that should help protect it against the pressures being exerted by grocers rationalising the amount of brands they stock.
Prior to the results, analysts at Shore Capital expected adjusted pre-tax profits of €97.4m for the year to February 2017 leading to EPS of 26.1¢, up from €94.6m and 24.2¢ for FY2015.
| C&C GROUP (CCR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 418¢ | MARKET VALUE: | €1.33bn | |
| TOUCH: | 417-420¢ | 12-MONTH HIGH: | 420¢ | LOW: 330¢ |
| DIVIDEND YIELD: | 3.3% | PE RATIO: | 29 | |
| NET ASSET VALUE: | 216¢* | NET DEBT: | 24% | |
| Year to 29 Feb | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2012 | 717 | 11.0 | 30.0 | 8.2 |
| 2013 | 724 | 105.0 | 27.2 | 8.8 |
| 2014 | 913 | 95.5 | 24.7 | 10.0 |
| 2015 | 987 | -67.8 | -24.5 | 11.5 |
| 2016 | 947 | 56.3 | 14.4 | 13.7 |
| % change | -4 | - | - | +19 |
Ex-div: 19 May Payment: 13 Jul *Includes intangible assets of €644m or 203¢ £1=€1.27 | ||||
